Bigger’s been better

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It’s never been better to be a giant company in the U.S., but will it stay that way? Executive summary The largest companies in the U.S. have seen marked improvement in their profitability on a number of measures over the last 30 or so years, while smaller companies have seen very little change. The improvement […]

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The race of our lives

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GMO’s Jeremy Grantham and Lucas White believe we’ve reached the fork in the road when it comes to our ability to mitigate climate change risks in 2018 and beyond. In fact, we have embarked in the race of our lives. Mr Grantham says one material advantage is the accelerating burst of green technologies, at a […]

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An investment only a mother could love: the case for natural resource equities

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Jeremy Grantham from GMO has written extensively about the long-term prospects for natural resources, but there are advantages to commodity investing beyond potential commodity price appreciation, including diversification and inflation protection. Resource equities are a great way to gain commodity exposure, while also accessing the equity risk premium. Given their somewhat hybrid nature, with one […]

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The stock market as monetary policy junkie: Quantifying the Fed’s impact on the S&P 500

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One of the stated goals of the policies that the Fed has been pursuing since the Global Financial Crisis is to raise asset prices. In this short White Paper GMO shows that this has been standard operating procedure for the Fed since Greenspan’s tenure began. However, the transmission mechanism doesn’t appear to be lower rates, lowering the […]

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